This bill creates surplus protection accounts within Social Security and Medicare trust funds. Annual surpluses must be transferred to these accounts and cannot be invested until Congress authorizes investment alternatives other than Treasury bonds. A commission would study better investment vehicles for the trust funds.
Latest Action
Referred to the House Committee on Ways and Means.
AI Summary
Plain-English explanation of this bill
This bill creates surplus protection accounts within Social Security and Medicare trust funds. Annual surpluses must be transferred to these accounts and cannot be invested until Congress authorizes investment alternatives other than Treasury bonds. A commission would study better investment vehicles for the trust funds.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><b>Social Security and Medicare Lock-Box Act</b></p> <p>This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account.</p> <p>The Managing Trustee of each trust fund (in both cases, the Secretary of the Treasury) (1) must transfer the annual surplus of the trust fund to its respective account; and (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations.</p> <p>The bill establishes in the executive branch a commission to study the most effective vehicles for investment of the trust funds, other than investments in the form of U.S. obligations. </p>
Key Points
Main provisions of the bill
Creates surplus protection accounts in trust funds
Prevents surplus investment in Treasury bonds
Establishes commission to study investment options
Separates surpluses from general operations
Aims to preserve trust fund assets
How This Impacts Americans
Potential effects on citizens and communities
Social Security and Medicare surpluses would be protected from being used for other government spending. The lock-box approach aims to ensure funds are available for beneficiaries. However, changing investment rules could affect government financing and trust fund returns.
Policy Areas
Primary Policy Area
Health
Related Subjects
Advisory bodies
Executive agency funding and structure
Financial services and investments
Government studies and investigations
Government trust funds
Medicare
Social security and elderly assistance
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
1221, 119th Congress (2025). "Social Security and Medicare Lock-Box Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-1221
